Fiscal and Debt Sustainability in Africa

By Kapil Kapoor, George Kararach, Jacob Odour, Walter Odero, Edward Sennoga, Brahima Coulibaly, and Ryosuke Nakata

Abstract

Fiscal sustainability concerns in Africa have increased recently following heightened fiscal vulnerabilities attributed to external factors including falling commodity prices that weakened fiscal revenues and growth, particularly for commodity-exporting African countries. To entrench fiscal sustainability, countries need to strengthen domestic resource mobilization and improve public investment management. Consequently, measures to increase tax revenue collections, savings mobilization and efficiency of public spending are critical. The G20 should support debt reporting, data harmonisation, tax compliance, combating illicit financial flows and developing effective debt resolution frameworks.